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Unformatted text preview: apart. It is a hot day and all the bathers want to but one ice-cream. For each bather the cost of getting up o their towel and travelling m metres to an ice-cream stall is m cents (1 cent per-metre). Don and Andrew buy identical ice-creams from the same supplier at a price of $1. At what points on the beach will Don and Andrew locate there ice-cream stalls. How much prot do Don and Andrew make. 4. The situation on Coogee beach is as described in question 3 above except the price of ice-creams is not regulated. Don and Andrew are free to choose where they locate on the beach and the price at which they sell their ice-creams. (a) If they located next to each other in the middle of the beach, what price would they charge and how much prot would they make? (b) If Don located at one end of the beach and Andrew located at the other end of the beach, what price would they charge and how much prot would they make. 1...
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This note was uploaded on 02/16/2010 for the course ECOS Economics taught by Professor None during the One '09 term at University of Sydney.
- One '09